Access to timely information has always been key but in today’s financial markets, the speed at which that information is received and the response to it delivered makes all the difference. Today transactions are done electronically and the first in line gets what he/she wants. So how does a trader get first in line. The trick is to optimize the path of electrics and fibre optics so that there are no hurdles. Each of the six layers between a trader and the Exchange need to be optimized and there are some simple but highly effective things to do that can make all the difference. This paper provides a high level guide to the basics of low-latency optimization for traders.

ED&F Man Capital Markets Hosting & Infrastructure - Financial Markets

Today financial markets are impacted by global events, and the ability to capitalise on those movements relies on the ability to trade in a low-latency environment. Delivering market leading connectivity, hosting, network and infrastructure services is the lifeblood of today’s modern financial industry. ED&F Man Capital Markets has put together a high level paper outlining the key elements of low-latency optimization for traders to enable them to compete in a market where every nanosecond counts. It reveals that it is not just the tools you use it is the way you use them to remove all bells and whistles that can impact on the speed you can operate at.

ED&F Man Capital Markets Hosting & Infrastructure - Systems

Those who snooze, lose and the same applies in low-latency trading. Once systems have been designed and deployed, it is crucial that their health is monitored and tracked by a knowledgeable team of IT support technicians who understand the industry. Checks should include monitoring the state of all connectivity, packet loss, interface utilization, and errors should all be tracked real time. Servers need to be monitored and infrastructure backed up. If any one component is not monitored 24/7, a trader’s ability to be first to market will be impacted. This paper provides a high level guide to the basics of low-latency optimization for traders.

ED&F Man Capital Markets Hosting & Infrastructure - Hosting Services

The proximity hosting services provided by ED&F Man Capital Markets are backed by an experienced application support team with experts in network design, server configuration and deployment, exchange interfaces, market data services, low-latency optimization and industry standard as well as proprietary trading platforms all backed by an enterprise level of IT and Trading support. By combining all of these elements in a single place, we enable our clients to harness all elements of the low-latency optimization path outlined in this article. Here we only scratch the surface – to learn more, contact the ED&F Man Capital Markets Hosting & Infrastructure services team.

A true end-to-end optimized path is a collaborative work between network administrators, server administrators, trading support, and most importantly – the Trader.As long as there has been a market, Traders have fought to be the closest to the deal. The interface has changed, but the underlying race has not. In today’s financial markets, optimizing systems for low-latency trading is key. There are six key layers to optimize in the path between a trading platform and the Exchange; each has its own challenges and it is essential to ensure that you work with an expert to maximise the advantages you can gain.

Some markets are more latency sensitive than others and however much you optimize your trading systems, there are no guarantees. However, one thing is for sure, if you do not optimize for low-latency trading, then you are putting yourself at a significant disadvantage. By working with a good Information Technology team, it is possible to eliminate common bottlenecks that improve the potential returns from your trades. This paper provides a high level guide to the basics of low-latency optimization for traders.

ED&F Man Capital Markets Hosting & Infrastructure - Ultra-Low Latency

Ultra-low latency trading involves attacking the issue of optimization from many angles. With the Operating System, remove all bells and whistles not required to get prices and place orders; with Computer Hardware, the faster, the better; on Local Network Infrastructure, the basic emphasis is on Bandwidth; on Wide Area Network use a private circuit not the internet to run your trade over… and so on. This paper provides a high level guide to the basics of low-latency optimization for traders.